Wi-fi firm Gowex files for bankruptcy following fake accounts scam

Spanish wi-fi firm Gowex has been forced into liquidation following revelations that its founder and chief executive had been cooking the books for four years.

Jenaro Garcia Martin resigned his position after admitting to his board that the company accounts did not ‘show a full and fair view of the company’s situation’.

Martin’s confession came after shares in the firm were suspended on Thursday following complaints from US broker Gotham City Research, accusing Gowex of being a ‘charade’ with revenues ‘at most’ a tenth of what was publicly reported.

This saw Gowex’s share price collapse by 60 per cent before their suspension, despite protestations from Gowex that the report was ‘incorrect’ and ‘defamatory’.

Gowex was a global operation, providing free wi-fi services in cities including Madrid, London and Shanghai.

John Glenday

John Glenday is responsible for compiling The Drum's daily morning bulletin and ensuring that overnight breaking news is covered while you're still brushing your teeth. Can also make a mean cup of tea.

Get the magazine app

The Drum app brings you some of the world's best marketing and media news, analysis and creative insights. Already the UK and Europe's number one marketing platform, we are also now covering the USA and Asia.

Delivered every fortnight, The Drum Magazine distils the babble of marketing industry commentary and news into a single intelligible and intelligent package. And because of its size, it has the space to showcase creative at its best.